India’s manufacturing activity expanded at the sharpest pace in just over a year in November, driven by marked growth in both output and new orders, survey data from IHS Markit showed Friday.
The Nikkei manufacturing Purchasing Managers’ Index, or PMI, climbed to 52.6 in November from 50.3 in October. Any reading above 50 indicates expansion in the sector.
Output grew at the fastest pace since October last year. A combination of higher order book volumes and a decrease in GST rates reportedly contributed to greater production.
Although weaker than the long-run average, new business growth accelerated to a 13-month high in November. New export orders increased for the first time in three months, though marginally.
Consequently, firms raised their payroll numbers numbers at the steepest rate since September 2012.
On the price front, input price inflation quickened to a 7-month high in November amid higher prices of chemicals, steel and petroleum products. Despite this, the rate of output charge inflation was marginal.
“The current phase of expansion led to business sentiment picking up as growth momentum seems likely to continue over the near-term,” Aashna Dodhia, Economist at IHS Markit, said.
Source: RTT News